New Public Finance Responding To Global Challenges

Description: The world's agenda of international cooperation has changed. The conventional concerns of foreign affairs, international trade, and development assistance, are increasingly sharing the political center stage with a new set of issues. These include trans-border concerns such as global financial stability and market efficiency, risk of global climate change, bio-diversity conservation, control of resurgent and new communicable diseases, food safety, cyber crime and e-commerce, control of drug trafficking, and international terrorism and weapons of mass destruction. Globalization and increasing porosity of national borders have been key driving forces that have led to growing interdependence and interlocking of the public domains--and therefore, public policy concerns--of countries, governments, private businesses, civil society, and people at large. Thus, new and different issues are now occupying top places on national policy agendas, and consequently, on the agendas of international negotiating forums. The policy approaches to global challenges are also changing. A proliferation and diversification of international cooperation efforts include focus on financing arrangements.Financing of international cooperation in most instances is a haphazard and non-transparent process and often seems to run parallel to international negotiations. There are many unfunded mandates and many-non-mandatory funds. To agree on and to achieve international economic goals, we need to understand how financing of international cooperation efforts actually works. Our understanding is hampered by two gaps: 1) lack of an integrated and cohesive theoretical framework; 2) lack of consolidated empirical and operational knowledge in the form of a comprehensive inventory of past, current and possible future (i.e. currently deliberated) financing mechanisms. This book reduces these two gaps and provides a guide to improve our ability to finance international cooperation. Table of Contents: Foreword; 1. Introduction: What this Book is About; 2. The Main Messages ; PART I: THE NEW NATIONAL PUBLIC FINANCE--TAKING THE OUTSIDE WORLD INTO ACCOUNT; 3. The Rise of the Intermediary State; 4. Making Social Policy under Efficiency Pressures from Globalization; 5. Addressing Long-term Fiscal Challenges in an Interconnected World; 6. Macro Markets: Managing Risks to National Economies; 7. National Taxation in a Globalizing World: Policy Sovereignty and Coordination; 8. Recognizing the Limits to Cooperation behind National Borders: Financing the Control of International Terrorism; PART II: THE NEW INTERNATIONAL PUBLIC FINANCE--RELYING ON PUBLIC-PRIVATE PARTNERING; 9. The New Players on the Ground: Global Public-private Partnerships; 10. Financing Mechanisms for International Cooperation: Growing Numbers, Diversity and Issue-Specificity; 11. The Right Money at the Right Time: Bringing New Financing Technology to International Cooperation; 12. Financing International Cooperation: A Public Choice Analysis; PART III: THE NEW INTERNATIONAL PUBLIC FINANCE--INVESTING IN GLOBAL PUBLIC GOODS PROVISION ABROAD; 13. Identifying High-Return Investments: When Does International Cooperation Pay--and for Whom?; 14. Making International Cooperation Pay: Money as a Strategic Incentive; 15. 'Trading' Global Public Services: The Incentive of Incremental Cost Payments; 16. Letting New Markets Find the Price: A Case Study of The Chicago Climate Exchange; 17. Using Existing Markets More Efficiently: Facilitating Access of developing Countries to Commodity Futures and Options Markets; 18. A New Perspective on the SDR Mechanism: Reducing the Cost of Holding Reserves; 19. Restructuring Unsustainable Sovereign Debt: The Merits of the Contractual and the Statutory Approach; 20. Excursus: Public Finance in the European Union: Emerging Lessons for International Cooperation; PART IV: THE NEW INTERNATIONAL PUBLIC FINANCE--INCENTIVIZING FOREIGN AID; 21. Some Things Cannot Yet Change: The Continuing Need for Multilateral Development Finance; 22. Creating Incentives to Graduate from Grants to Loans; 23. Offering Challenge Grants: The MCA; 24. Overcoming Smallness: The Challenge of Underfunded Regionalism; 25. Purchase Commitments: Incentives for Private Sector Involvement in Poverty Reduction; 26. From Direct to Indirect Donor Financing: The Role of Guarantees in Attracting private Finance to Developing Countries